Rachel Namoff from Arapaho Asset Management takes a look at tax breaks for 2014.
In December, President Obama and the congress passed a new bill to allow taxpayers additional tax deductions. There are quite a few that most likely will not apply to us, however there are some that may be of use to you.
- Mortgage Insurance Premiums-you can now deduct the cost of your mortgage insurance premiums if you itemize your deductions.
- Teachers can now write off $250 annually for supplies bought for the classroom-this does not need to be an itemized deduction.
- College expense credit- With it, you may deduct up to $4,000 in qualified tuition, fees and related expenses for post-secondary education, such as college and graduate school. The deduction may be taken for yourself, your spouse or your dependents.
- Give away part of your IRA-if you are over the age of 70 1/2 you are required to do a minimum distribution from your IRA accounts. The bill now allows you to take the RMD and give to charity tax-free
If you are not 70 1/2 this last item is irrelevant. Here’s what is relevant.
- Your time and your money are either working for you or against you
- Let’s put your money and time to work for you!
- Compound Interest is the eight wonder of the world. He who understands it, earns it. He who does not, pays it. -Albert Einstein
- Us common folks may not be Albert Einstein but that does not mean we cannot take advantage of compound interest.
- Instead of spending your tax savings on that impulse buy, pay your self first and put the savings into a retirement account to work for you
- Our office offers classes on retirement planning that are educational and tax deductible within the new guidelines!